Every June, RIJ focuses on indexed annuities. Last year, we studied options in indexed annuities. This year we consider the indexes themselves, especially 'hybrid' and 'volatility-controlled' indexes. Bryan Anderson, Don Dady and David Lau weighed in.
'On average, there will be no double-digit returns,” said Don Dady, co-founder of Annexus. 'But once in a while there will be. We have definitely seen some phenomenal returns with vol-controlled indexes.'
Annuity sales will rebound in 2021: Secure Retirement Institute; ‘Income-oriented’ models are a growth category: Cerulli; Equitable and Venerable close transaction.
David Lau of DPL Financial Partners, the fee-based annuity platform, likes indexed annuities but doubts the value of the 'volatility-controlled' indexes often featured in them.
'I didn’t like the blended or hybrid indexes in annuities at first because I thought they were too complex,' said Bryan Anderson, founder of Annuity Straight Talk. 'But over the past few years I’ve changed my mind.'